Level 7 Walkthrough:  by Mystery Man

To get into Level 7, play the flute beside the lake.  It will dry up, revealing
a set of stairs.

Once inside, go East and kill the Moldorms to get some bombs, then go North.  In
this room, bomb the North wall, but don't go that way yet.  Instead, go East.
You can kill the enemies here to open the sealed, North door, going to a wise
man, but either way, go East.  There will be a Digdogger, kill him to get some
bombs, otherwise go East.  Kill the Stalfos to get a key, then go back West four
times.  Bomb to the North and West walls, then kill the Goriyas to refill your
bomb supply, then go West.  Kill the Keese to get more bombs, then go South. 
Get the key, then go North twice.  Ignore the Dodongos unless you are short on
rupies, and unlock the door to the North, then go through.  Here you will find
the last bomb capacity upgrade.  To hold four more bombs it will cost 100 rupies.
Buy or not, go back South, then East.  Kill the Goriyas to open the sealed door
to the East, then go through.  Kill the Stalfos for the Compass, then go back
West, then North.  Kill the enemies to open the sealed door, then go North again.
You will find a Digdogger.  However, when you play your flute this time, he becomes
three miniature Digdoggers.  Kill them off, then bomb to the East and go through.
Kill the Moldorm, get the key, then go West twice.  Kill the enemies here for five
rupies, then go through the locked, Northern door.  Here is where you will need to
use the bait I told you to buy.  Go North.  Grab the Map, then bomb to the North and
go through.  You will be in a secret room.  Grab the rupies, then bomb East, and go
through.  Kill the Goriyas to open the door and to get five rupies.  Now go East again.
Kill these Goriyas to get a key, then go back West, then South.  Bomb East, and go
through.  Kill all the enemies, including the ones inside the stones, by using your
Wand, then push the left-hand stone and go down the stair to get the Red Candle!  Then
go back up the stairs, then East.  Kill these enemies for some bombs, then go East.
Kill the Digdogger, again he will form into three small Digdoggers to open the door
to the North.  Go through.  Ignore the Dodongos and bomb and go East.  This room can
pretty tough.  You must kill all the Wallmasters that appear.  Be careful not to get
grabbed, or else you will be taken back to the entrance!  After you kill them, push
the stone in the middle of the column to make stairs appear and go down them.  In this
next room, bomb East, and go through to face the boss,
Aquamentus!

Go on to
Level 8.

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--To get to Level 8 from Level 7, go:  South, East, South, East, East, East,
East, East, East, East, East, North, East, South, East.

--To get to Level 8 from the origin, go: East, North, East, East,East, North,East,South.